Since the beginning of 2009, the NZD/JPY has seen a steady uptrend having begun near 44.00. It topped out around 69.50 toward the end of October. Prices have since dropped rather aggressively hitting a low of about 60.00 near the end of November (breaking through the 2009 bull trend line the process). Over the past couple weeks, price have rebounded and are currently testing near-term resistance near 65.00.
We still may have a solid shorter-term selling opportunity in the form of a double-top bearish Gartley pattern if current 65.00 resistance fails and prices move up to
around 67.0 (click on chart to enlarge it). Assuming this pattern completes and no warning signs (gaps and/or long bars prior to entry) are present, we may see at least a temporary dip down to initial fib support of the projected CD leg near 65.00 (38.2% of projected CD leg) followed by 64.00 (61.8% of CD). The key will be for price to remain above point C (62.00) before reaching the projected entry of 66.80; otherwise, this specific double-top Gartley setup is no longer valid.
around 67.0 (click on chart to enlarge it). Assuming this pattern completes and no warning signs (gaps and/or long bars prior to entry) are present, we may see at least a temporary dip down to initial fib support of the projected CD leg near 65.00 (38.2% of projected CD leg) followed by 64.00 (61.8% of CD). The key will be for price to remain above point C (62.00) before reaching the projected entry of 66.80; otherwise, this specific double-top Gartley setup is no longer valid. Potential Strategy : Sell if prices rally to 66.80 risking 67.84 targeting 65.22 (T1), 64.09 (T2).
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